New Offer from IRS

Physician's Money Digest, October15 2003, Volume 10, Issue 19

If you have a tax liability, you can offerto make a deal with the IRS through anapplication for an offer in compromise(OIC), in which you basically suggest asettlement with the agency. StartingNovember 1, each OIC application mustbe accompanied by a $150 filing fee,which the IRS says is used to offset someof the administrative costs of the program.More importantly, the agency alsohopes to cut down on the number of"inappropriate" filings. Taxpayers whoseclaim is based solely on doubt as to liabilityand taxpayers whose income isbelow the poverty level, based on guidelinesissued by the US Department ofHealth and Human Services, will nothave to pay the application fee.